Wall Street Gains After Inflation Surprise and Slower Growth

Macro

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Wall Street stocks advanced Thursday after fresh U.S. economic data showed inflation eased while second-quarter growth came in below expectations. The Dow Jones Industrial Average climbed about 0.5%, the S&P 500 gained nearly 0.9%, and the Nasdaq Composite rose about 1.7%. Core personal consumption expenditures, the Federal Reserve's preferred inflation measure, increased 0.1% in June from the prior month, below economists' expectations of 0.2%, while on an annual basis it rose 3.3%, matching forecasts. Separately, U.S. gross domestic product expanded at a 1.5% annualized pace in the second quarter, below the 2.3% consensus estimate and down from 2.1% growth in the first quarter. Treasury yields declined, with the two-year yield falling about five basis points to 4.21% and the 10-year yield slipping three basis points to 4.65%. Among individual movers, Lam Research jumped nearly 18%, while Carvana fell about 13%.